Entain PLC CEO Jette Nygaard-Andersen has stepped down from her position following the company’s settlement on a bribery charge. The sports betting and gambling company, which owns popular brands such as bwin, Coral, Ladbrokes, PartyPoker, and Sportingbet, announced on Wednesday that Nygaard-Andersen will be replaced by Stella David, a non-executive director who will serve as the interim CEO until a permanent replacement is found.
Nygaard-Andersen’s decision to leave comes after Entain entered into a deferred prosecution agreement with the UK Crown Prosecution Service regarding bribery offenses committed by its former Turkish firm. The investigation into Entain by HM Revenue & Customs was launched in 2019, and the company faced allegations relating to bribery offenses at its former Turkish unit that was sold by its management team in 2017.
Entain was accused of having insufficient procedures in place to prevent such activity, although the company claims to have undertaken a comprehensive review of its anti-bribery policies and procedures since then, taking decisive action to strengthen its compliance program and related controls.
As part of the settlement, Entain has agreed to pay a penalty of GBP585 million, along with disgorgement of profit. Additionally, the company will make a charitable donation of GBP20 million and pay GBP10 million towards HMRC and CPS costs. These payments will be made in four annual installments from funds set aside by Entain to cover expected penalties stemming from the case.
Chair Barry Gibson expressed his gratitude for Nygaard-Andersen’s leadership during a challenging period, stating that she played an instrumental role in executing a strategic shift towards regulated markets, transforming operations, and improving the customer offering. He also expressed confidence in Stella David’s abilities, noting her extensive commercial experience across multiple industries and her capacity to guide Entain towards its strategic goals while the search for a permanent CEO takes place.
Following the announcement, shares in Entain rose by 4.0% to 838.00 pence each in London on Wednesday morning.
In conclusion, the CEO of Entain PLC has resigned after the company reached a settlement on a bribery charge. Stella David will serve as the interim CEO until a permanent replacement is found. The settlement includes a penalty payment, disgorgement of profit, a charitable donation, and payment towards HMRC and CPS costs. Entain has expressed gratitude for the former CEO’s leadership and confidence in the interim CEO’s abilities. Shares in the company have seen an increase following the announcement.
